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America’s Marine Highways Program Propeller Club October 4, 2012 Jim Murphy East Gulf Lower Mississippi System Gateway U.S. Department of Transportation – Maritime Administration
Maritime Administration Mission: To improve and strengthen the U.S. marine transportation system - including infrastructure, industry and labor - to meet the economic and security needs of the Nation.
Our Vision: America’s Marine Highway Reliable, regularly scheduled, competitive and sustainable services employing U.S. ships and tugs are a routine choice to transport freight and passengers. 3
Shifting Trade Patterns Panama Canal Expansion Post-Panamax Ships Manufacturing and Distribution Shifts
Top 1000 “Blue Chip” Multinational Shipper Priorities 5 With Permission from
Map - 21 New legislation – passed July 2012 27 month program that will lay the baseline for future of transportation system in the U.S. / freight and passengers Will identify National Freight Network Will establish State Freight Advisory Committees 6
M-5 M-95 M-10 M-90 M-70 M-55 M-5 (AK) M-71/77 M-65 M-40 M-49 M-87 M-64 M-A1 M-75 M-84 M-580 America’s Marine Highways Designated August 2010 M-2 LEGEND MH Corridor MH Connector MH Crossing U.S. Interstate M-55 M-70 M-95 M-5 M-90 M-90
M-5 M-95 M-10 M-90 M-70 M-55 M-5 (AK) M-71/77 M-65 M-40 M-49 M-87 M-64 M-A1 M-75 M-84 M-580 $179.26M Marine Highway & TIGER Grants 2009 to 2012 M-2 LEGEND MH Corridor MH Connector MH Crossing U.S. Interstate M-55 M-70 M-95 M-5 M-90 M-90 Cates Landing, TN $13,000,000 Green Trade Corridor, CA $30,000,000 Tri-City Port, IL $14,500,000 Port Manatee, FL $9,000,000 Davisville, RI $22,300,000 Maine Ports, ME $14,000,000 Tenn-Tom W/W $1,700,000 Cross Gulf $3,340,000 James River $1,100,000 Detroit/Windsor Ferry $2,200,000 Oakland, CA $15,000,000 Mobile, AL $12,000,000 Lewiston, ID $1,300,000 Bayonne, NJ $11,400,000 Catoosa, OK $6,425,000 Brownsville, TX $12,000,000 Corpus Christi, TX $10,000,000
A Focus on States 36 State DOTs influence America’s Marine Highways Which State DOT department will consider it? – 6 = maritime, ports, waterways or marine (Florida) – 8 = planning (Texas) – 6 = intermodal (Georgia & Tennessee) – 5 = freight (Mississippi) – 3 = rail & marine/railroads & harbors – 1 = aviation & ports – 1 = trade development (Alabama) – 6= have no department that addresses maritime
Critical for forming Marine Highway Services Need communication among multiple partners (including public and private) Promotion efforts must be coordinated between all partners Need business, market and finance plans Need adequate capital for start-up operations, with contingency fund Need to be located on a designated Marine Highway Corridor, Connector or Crossing.
12 No GO GO High Vessel Construction Cost Institutional Barriers (HMT, Govt Policy, etc.) Freight & Shipper Uncertainty High Operating Cost More Than Half Empty? Infrastructure Gaps Tipping Point
13 GO High Vessel Construction Cost Institutional Barriers (HMT, Govt Policy, etc.) Freight & Shipper Uncertainty High Operating Cost Infrastructure Gaps Tipping Point Or is it...
14 GO Tipping Point More Than Half Full? Advisory Committee Recommendations to DOT Secretary Dual Use/M 55 Studies DOD Support & TITLE XI-CCF LNG + Dual Use $ $111 Million Grants
15 Fuel Costs Policy Changes Start up funding risk Demand Supply Maritime as part of the surface transportation system Carbon Trading Shipper Incentives HMT & Tonnage Tax
In the current market and regulatory environment launching new services is definitely challenging. However, changing dynamics may be bringing us closer to the tipping point. Bottom Line 16
17 Provides additional capacity to the regional surface transportation system Provides competitive transportation options for shippers Reduces highway maintenance costs and air emissions Tenn Tom Waterway Pilot Project
18 Tenn Tom Waterway Pilot Project Current Challenges Lack of start-up capital Lack of comfort from shippers (frequency, reliability, visibility) Lack of a complete supply chain
19 Tenn Tom Waterway Pilot Project Some Solutions $1.76M MARAD Marine Highway Grant for floating, wheeled or fixed infrastructure Transportation operator partnerships that tie all modes into a complete supply chain Increased comfort factor from shippers
Thank you Jim Murphy (504) 589 6658 James.firstname.lastname@example.org Jim Murphy (504) 589 6658 James.email@example.com 20
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